Making Minor Repairs
Doing it In-House vs. Calling a Contractor

Every year, like clockwork, Wayne Bellet, owner of Bellet Construction in Manhattan, says that he gets multiple requests for his company to scrape, prime and paint metal fire escapes.

“It’s silly, because it’s so easy to do, and building managers and boards have staff that can do it,” says Bellet, whose company actually specializes in sealing buildings from water penetration. “If I charge $600 per fire escape and your building has 20 of them, doing the work in-house can really save money. All it takes is some personal protective equipment, such as masks and goggles, and a hand scraper.”

With many buildings and HOAs struggling to get out from under post-recession economic burdens, some boards and managers may be tempted to use in-house staff members to do certain maintenance and repair tasks around the property even if it's not necessarily in the staff’s job description, or if the job in question is maybe a bit more high-stakes than changing a light bulb or giving the lobby a fresh coat of paint. Sometimes it’s perfectly fine—not to mention cost-effective—to hand off a job to a staff member. On the other hand, there are some jobs that should definitely be left to the professionals.

Ordering In

“I am definitely in favor of using staff for doing work that outside contractors would do,” says Steven Gold, president of Hudson View Associates, Inc., a management firm in Manhattan. “I find the most economical and best way to use them is for plastering and painting jobs, but it all depends on what capabilities your staff has. Fortunately, the board or management company can select the people they are hiring and hire for the work that you know your building needs.”

Gold says that these three areas of concentration are plastering and painting, plumbing and electrical. “It’s good to have someone who knows plumbing on your staff in case of a pipe leak in a unit,” says Gold. “The shareholder won’t spend the money, but then before you know it, it’s leaking to the person below and wasting water in the building. If you don’t have someone fix it, it will cost the building money, and the water charges will be higher. If you already have someone on your property who can take a look at it, you don’t have to hire a licensed plumber.: But, Gold cautions, “you do need a licensed plumber for anything more than a leak.”

When it comes to electrical jobs, there are limits to what your staff can do, says Gold, because of New York City codes. “Electricians who aren’t licensed can’t work inside the walls.”

Saving money might seem like a great reason to add to your staff’s to-do list, but there are some other factors to keep in mind too, including the amount of time a job may take a staff member away from his or her regular duties. “You may want to throw your staff more maintenance jobs, but they have other responsibilities too,” says Gold. “Think about how much time it will take. If the job is going to take more than a few days, you might want to hire it out, because that staff member might be needed on other jobs in the building.”

Get a Pro

There are some maintenance jobs, however, that Gold says he would always hire out to a professional. “For example,” he says, “I would always hire a professional landscaper. Landscapers know what different species of plants need, and how watering needs to be done so the plants don't die. Also, when it comes to major interior decorating projects, it’s important to bring in a designer because you need to maintain the image of the building. And finally, beyond a little patch job, roofing problems should always be done by an outside contractor.”

But what if John Smith who lives in apartment 2B and happens to be a licensed master electrician gets wind that you need help and volunteers to do a wiring job for pennies on the dollar? Marc Supcoff, founding partner of the Law Offices of Marc H. Supcoff in Manhattan, says that it’s best to say thanks but no thanks to such offers. “Hiring a resident in the building to do a maintenance job might not be legal,” he says. “First, there cannot be any conflict of interest by the board member who is assigning the contract. For example, the contractor cannot be a close friend of someone on the board. Also, you need to check the bylaws to make sure they don’t prohibit you from contracting with a shareholder or unit owner.”

Even if there isn’t a conflict of interest or a bylaw that’s stopping it, Supcoff says that he would still not recommend hiring a resident or shareholder for any kind of maintenance work at any time. “Construction contracting is very complicated, and comes with thorny liability issues,” he says. “Contractors must come with liability insurance, worker’s compensation, and indemnification of damage to the building. Those protections are less likely to be in place or available if the building contracts with a resident. There could be a real liability issue if the property is damaged or someone gets hurt and the resident doesn't have the necessary insurance.”

However Eric Goidel, senior partner of Manhattan-based law firm of Borah, Goldstein, Altschuler, Nahins & Goidel, P.C., says that it’s different if the resident is just offering to get a better deal on a product. “I had one shareholder in the building supply business who was able to get the building a lower price on garbage bags,” he says. “Garbage bags are garbage bags. There is no issue of workmanship, but if they are on the board, they shouldn’t be involved with the bidding process, discussions or voting process. Generally if you can avoid it, you are better off.”

Quality Control

Unfortunately, hiring a resident or shareholder doesn’t mean that the job is going to come out right and, if it doesn’t, there may be ramifications. “If you, or the other residents, don’t like the way the job came out, the resident who did the work is going to be in an awkward situation because they live in the building,” says Goidel.

But then what? “You have the same recourse against an individual as you would have if you hired an outside contractor but you need to be careful, because what if you didn’t sign a contract with the individual and they move? The work also isn’t as enforceable as a warranty with a company.”

If someone in the building works for an elevator company, they may say that they can do the work because that elevator company has insurance. Again, say thanks but no thanks. “The person volunteers to do the work, but is that person able to deliver the insurance?” says Goidel. “Also, if you have existing warranties—on the roof, for example—you need know if that warranty would be voided if a resident worked on the roof. An individual cannot deliver their company’s insurance if they are doing the work as a side job. It would be costly, and the savings from hiring that person to begin with would go out the window.”

Making the Call…

When making a final decision, Goidel says to use the Business Judgment Rule. “It might save the building money, but it might not be in the best interest of the corporation,” he says.

Bellet also knows that he’s also going to get requests to do such minor projects as caulking. “Me and my $2 tube of caulk are going to do the job for 10 times what you are paying your building staff, so consider the job before you call,” he says.

Bellet has a compromise though, if management and the board are really stuck for some maintenance help. “Depending on the job, call us or any of your valued vendors, and we’ll teach your staff,” he says. “It’s worthwhile, because once you teach them, they can do the work on their own and we can lend supervision.” However, he still expects that you’ll hire out the big jobs, such as a roof repair, and pick his brain while he’s there on other smaller jobs.

So before you assign a maintenance job to a staff member or call a professional for an estimate to come in and complete it, consider what type of maintenance job it is, how much time it will cost, your budget and, of course, your staff’s skill level. In the long run, saving a few bucks may end up costing the building so much more.

Lisa Iannucci is a freelance writer and a frequent contributor to The Cooperator.

Comments

Scraping and painting fire escapes usually involves lead paint. Areas must be contained which usually involves plasticizing lines of fire escapes. Windows need to be covered. What about an EPA Lead Paint certificate? If a disgruntled resident calls the city and these measures are not in place, costly violations in all likelihood would be issued.

As renters continue to flock to Brooklyn for more space and a discounted price, luxury vacancies are giving some developers pause. However, despite the loss of Amazon's departure from Long Island City, Brooklyn saw two of the most dynamic companies open up shop in the Borough. Find out how Brooklyn is doing in the current market cycle at Bisnow's Annual Brooklyn State of the Market! For information, visit www.bisnow.com.

If you are a homeowner, tenant, small business owner or building manager, we encourage you to visit your local borough office where Department of Buildings staff can answer your questions and provide the information you need.Permits, construction codes, zoning regulations, sign offs, certificates of occupancy, place of assembly, equipment installations, violations and civil penalties are just a few of the things we can assist you with.
Our plan examiners, inspectors and staff are here to help you build and live safely in New York City – no appointment needed. For information, visit https://www1.nyc.gov/site/buildings/homeowner/homeowner.page.

In the last three decades, condominiums have gone from a rarity to a highly popular form of home ownership. Unfortunately the law has not kept pace with the growth of condominiums and Boards must use an 18 page 55 year old law that was based on a Puerto Rican law to solve every problem, while other states have detailed Condominium Acts that provide boards and unit owners detailed guidance on how to operate their condominiums and clarity with regard to the rights and obligations of Boards and owners. This places the Board in a terrible position in attempting to operate a complex building and, deal with everyone’s demands. And then there are the myriad of city and state mandates: annual tests to perform, reports to file, deadlines to meet, coupled with day-to- day issues that can arise in the condo community. CNYC board chair Stuart Saft, Esq. will lead a discussion of these issues and others that you raise. Board members and unit owners of CNYC member condominiums are welcome at no cost, but advance registration is required. Non-affiliates are welcome, too, at a fee of $50 if paid in advance or $75 at the door. Please reserve your place at workshops@CNYC.coop or (212) 496-7400.

If you are a homeowner, tenant, small business owner or building manager, we encourage you to visit your local borough office where Department of Buildings staff can answer your questions and provide the information you need.Permits, construction codes, zoning regulations, sign offs, certificates of occupancy, place of assembly, equipment installations, violations and civil penalties are just a few of the things we can assist you with.
Our plan examiners, inspectors and staff are here to help you build and live safely in New York City – no appointment needed. For information, visit https://www1.nyc.gov/site/buildings/homeowner/homeowner.page.

Indispensable for board members in self-managed buildings, this class will be of interest to others as well. Rebecca Poole will provide guidance (and a long list of links) to enable you to check your building’s status with the Department of Finance, the Department of Buildings, HPD, DEP and any other agencies where you have forms to file, reports to register. etc. Representatives of CNYC member cooperatives and condominiums and those that are members of FNYHC, ARC, CCC, UHAB and Big Apple CAI attend at no cost, but advanced registration is required. Non- members are very welcome at a fee of $60, payable in advance. Reserve your place by calling CNYC at (212) 496-7400 or register by e-mail to workshops@CNYC.coop. To pay at the door, preregister and add $15.

Long Island City alone has substantial real estate development in the pipeline. There is 466K SF of additional retail expected by 2021, on top of the existing 488K SF of retail in mixed-use and renovated commercial properties. There are also 10,500 new units due by 2021 -- more than half the 19,680 units built since 2006. For information, visit www.bisnow.com.

Successful community management starts with the essentials! This comprehensive community association management course provides a practical overview for new managers, an essential review for veteran managers and an advanced course for board members. Successful completion of the M-100 can be the first step toward earning the CMCA credential, awarded by CAMICB. For information, visit www.caionline.org.

We will discuss various ways for your property to stay relevant in this ever-changing market. Topics include: reimagining amenities; mechanical energy conservation measures; interior solutions; and exterior projects. More topics to be announced.

If you are a homeowner, tenant, small business owner or building manager, we encourage you to visit your local borough office where Department of Buildings staff can answer your questions and provide the information you need.Permits, construction codes, zoning regulations, sign offs, certificates of occupancy, place of assembly, equipment installations, violations and civil penalties are just a few of the things we can assist you with.
Our plan examiners, inspectors and staff are here to help you build and live safely in New York City – no appointment needed. For information, visit https://www1.nyc.gov/site/buildings/homeowner/homeowner.page.

Sweeping rent regulations passed in Albany in June imposes many compliance requirements on transactions in cooperatives and some in condominiums, by virtue of generalized 'lease' requirements in part M of this 74 page law. CNYC president Marc Luxemburg, Esq. will be joined by Peter Massa, Esa. to review the many new requirements of the law and suggest remedies that your cooperative or condominium may wish to adopt. CNYC is working for corrective legislation to exempt cooperatives and condominiums from the requirements of Part M when the legislature meets again in 2020, and will enlist your help in this endeavor. Board members, shareholders, unit owners and management personnel for cooperatives and condominiums that are members of CNYC, FNYHC, ARC, CCC, UHAB and NAHC are welcome at no charge, but advance reservations are required; others are welcome at a fee of $60 if paid in advance or $75 at the door. Call CNYC at 212496-7400 or register online www.CNYC.coop.

Are You A Board Member of a Co-op, Condo or HOA? Then you won’t want to miss this show! Board members and residents will find this educational event to be a valuable tool in finding service providers, meeting other Board Members and learning useful information regarding all practical matters of community living. For information, visit <a href="http://www.cai-li.org">www.cai-li.org</a&gt;, or contact Christopher Byrnes or Eric Clemente: 631-882-8683, info@cai-li.org.&nbsp;

If you are a homeowner, tenant, small business owner or building manager, we encourage you to visit your local borough office where Department of Buildings staff can answer your questions and provide the information you need.Permits, construction codes, zoning regulations, sign offs, certificates of occupancy, place of assembly, equipment installations, violations and civil penalties are just a few of the things we can assist you with.
Our plan examiners, inspectors and staff are here to help you build and live safely in New York City – no appointment needed. For information, visit https://www1.nyc.gov/site/buildings/homeowner/homeowner.page.

If you are a homeowner, tenant, small business owner or building manager, we encourage you to visit your local borough office where Department of Buildings staff can answer your questions and provide the information you need.Permits, construction codes, zoning regulations, sign offs, certificates of occupancy, place of assembly, equipment installations, violations and civil penalties are just a few of the things we can assist you with.
Our plan examiners, inspectors and staff are here to help you build and live safely in New York City – no appointment needed. For information, visit https://www1.nyc.gov/site/buildings/homeowner/homeowner.page.

Attorney Marc J. Luxemburg, who is president of CNYC, led the development of a model Proprietary Lease and Shareholders Agreement, adapted to the 21st century needs of New York housing cooperatives. Version 2.20 includes suggestions received from many experts in the course of the development of this document. Mr. Luxemburg will discuss the major innovations of the new lease and will offer advice for ensuring its adoption. There is no cost for CNYC members and subscribers to attend this class, but advance registration is required. Others are welcome at a fee of $60 if paid in advance or $75 at the door. Call 212 496-7400 or send e-mail to workshops@CNYC.coop to reserve your place. Continuing Legal Education credit is available to attorneys attending this class. Attorneys who work primarily with low income clients or those who themselves have modest incomes, may write to CNYC to request abatement of applicable fees.

Anderson Kill's Co-op and Condo Group Presents a Seminar Series Part V: "Licensing Agreements"

In this lecture, our attorneys will highlight what to watch out for, what to negotiate for, and when it may be better to stand one’s ground and let a judge decide. From access concerns to zoning issues, you will leave this seminar with a firm understanding of what to negotiate for and how to select the right attorney to handle the job. For information,. www.andersonkill.com.

If you are a homeowner, tenant, small business owner or building manager, we encourage you to visit your local borough office where Department of Buildings staff can answer your questions and provide the information you need.Permits, construction codes, zoning regulations, sign offs, certificates of occupancy, place of assembly, equipment installations, violations and civil penalties are just a few of the things we can assist you with.
Our plan examiners, inspectors and staff are here to help you build and live safely in New York City – no appointment needed. For information, visit https://www1.nyc.gov/site/buildings/homeowner/homeowner.page.

Join us for our annual expo at Levity Live in the Palisades Center for a multi-media expo experience! There will be education, food, refreshments, prizes, vendors and more. Topics will include how to evaluate your manager/boards performance and discuss improvement plus ask anything legal! For information, visit https://www.cai-hvny.org/post/oct-24-expo-west-nyack-ny.

Learn about the latest building services from more than 250 exhibitors, attend educational seminars, get free advice from industry experts, and network with your peers at this leading real estate trade show in New York. For information, visit coopexpofall.com.

If you are a homeowner, tenant, small business owner or building manager, we encourage you to visit your local borough office where Department of Buildings staff can answer your questions and provide the information you need.Permits, construction codes, zoning regulations, sign offs, certificates of occupancy, place of assembly, equipment installations, violations and civil penalties are just a few of the things we can assist you with.
Our plan examiners, inspectors and staff are here to help you build and live safely in New York City – no appointment needed. For information, visit https://www1.nyc.gov/site/buildings/homeowner/homeowner.page.

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Cooperator.com is an online edition of The New York Cooperator newspaper. The publication serves the co-op and condo community with thousands of free articles on management, finance, maintenance and more...